My potential co-owners and myself are looking at purchasing an aircaft purely for personal use. We have drafted a comprehensive co-ownership agreement and are taking measures to explicitly maintain our status as “just three guys who co-own an asset”. Obviously, if we take “boneheaded” actions, we’re personally liable as individuals, but on what basis (in any state) are you suggesting that simply co-owning, maintaining and using an asset puts one at risk of being called a “partnership”?

If we form any “entity” we’re putting outselves in the crosshairs of significant tax liability for sales (not applicable in TX by “occasional sale” rule), use (NA for “hobby”) and property taxes (around 2.5% annually here). For that, I could buy some serious upgrades to my liability policy.

thanks for any feedback.
Derek

His opinion was if I am flying the aircraft, and something happens … I am getting sued no matter what structure the aircraft is owned.

Can you explain a situation where placing the aircraft in a corporate entity may offer protection assuming I am the only pilot of the aircraft and the only one that actually touches the aircraft.

Thanks for a great Program!